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Brazil clears Shell’s $70 bln purchase of BG

Brazil gave the green light to oil major Royal Dutch Shell to buy smaller rival BG, advancing the $70 billion merger — the largest of the past decade — closer to completion in early 2016.

Shell is set to become the largest foreign operator offshore Brazil after it buys BG, so the clearance from the country was a crucial step to complete the merger on time.

Brazil’s competition authority CADE said on Wednesday it had given preliminary approval to the transaction “without restrictions.” BG said that if no appeals were lodged or referrals made in the next 15 days, CADE’s clearance would become final. A spokesman for Shell confirmed the approval and the 15-day appeals period.